Insurance isn’t top of mind for many residents and early-career physicians.
It’s easy to put off — especially when you’re focused on finishing training, landing your first position, or tackling student debt. But being underinsured — or insured with the wrong type of policy — can be one of the costliest mistakes a physician can make.
At Tall Oak Capital Advisors, we remind clients that insurance doesn’t just protect your future — it protects everything you’ve already worked so hard to build, not just for you, but for your loved ones. Without proper coverage, you may be taking on more risk than you realize.
Disability Insurance: Protecting the Income You Haven’t Yet Earned
One of the most eye-opening trends we’ve seen is that nearly 30% of all physician disability claims are now related to mental health — and most come from physicians under the age of 45.
That’s not just a statistic. It’s a reflection of the emotional and psychological toll many young physicians carry — particularly in a post-COVID world.
Without adequate disability coverage, facing burnout, depression, or anxiety could mean losing your ability to earn an income — all while managing debt, covering lifestyle expenses, or trying to recover.
Many physicians assume that having some coverage is enough. But not all disability insurance is created equal. Your policy should answer key questions like:
- Are you covered if you’re unable to work in your specific specialty?
- Will your benefits keep pace with inflation if you’re on claim for several years?
- Is your policy personally or corporately owned?
- Do you have a future insurability rider, allowing you to increase coverage without medical requalification?
- Are there coverage gaps during your transition from residency to full-time practice?
- Do you own your policy — or is it tied to your professional association?
The wrong answers could leave you exposed — right when you need protection most.
Critical Illness Insurance: Support When You’re Sidelined
While disability insurance protects your income over time, critical illness insurance provides a one-time, lump-sum payment if you’re diagnosed with a serious illness — such as cancer, stroke, or heart disease.
This type of insurance isn’t about long-term income replacement — it’s about immediate financial relief that allows you to focus on recovery instead of expenses.
Used strategically, critical illness coverage can help manage major, unexpected costs — whether it’s out-of-pocket treatments, alternative therapies, or time away from work that isn’t covered by a disability policy.
Life Insurance: Planning for the Long Game
When we’re asked if insurance is necessary, we ask in return: “If you were to pass away, would anyone suffer a financial consequence? And do you care?”
If the answer is yes — whether today or years from now — you should consider life insurance.
For early-career physicians, it may feel like a “later” decision, but obtaining coverage early often means better rates and greater flexibility in the future. Whether you’re planning to start a family, buy a home, or grow a practice, life insurance helps protect the future you’re working to build.
Getting coverage while you’re healthy also preserves your insurability for the future, when life insurance may become a valuable tool for tax and estate planning — especially when corporately owned or integrated into a broader wealth strategy.
Our Approach: Coverage with Purpose
At Tall Oak, we believe insurance serves an important role:
- Protect your financial plan. You’ve built a roadmap — insurance ensures life’s unexpected moments don’t throw you off track.
- Preserve your earning potential. Proper disability and critical illness coverage means that even if you can’t work, your lifestyle and goals don’t have to change.
- Protect those who depend on your income. Life insurance can provide financial security for your loved ones, helping them maintain stability if you’re no longer there to support them.
- Enable tax-efficient estate transfer. Insurance can be a powerful tool for passing on wealth — helping you minimize taxes and maximize what your beneficiaries receive.
We help physicians determine the type, timing, and structure of coverage that makes the most sense based on their specialty, practice setup, tax strategy, and long-term vision.
Most importantly, we make sure our clients understand what they’re buying — so their insurance is proactive, not reactive.
Because when your career is covered the right way, you can focus on what matters most: living the life you’ve worked so hard to build.
Book a 30-minute review meeting with an advisor. https://talloakcapitaladvisors.com/meet-with-us/
For more information, refer to our other blogs from this series:
- A Hidden Cost to Physician Burnout: Lack of Financial Literacy
- New Physicians: Don’t Let These 5 Mistakes Derail Your Financial Future
- Why Your $200K in Debt Could Cost You $500K – Tall Oak Capital Advisors
The views expressed in this commentary are those of Tall Oak Capital Advisors as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Statistics, factual data and other information are from sources Tall Oak believes to be reliable but their accuracy cannot be guaranteed. This commentary is intended for distribution only in those jurisdictions where Tall Oak Capital Advisors are registered. Securities-related products and services are offered through Raymond James Correspondent Services Ltd., member Canadian Investor Protection Fund. Insurance products and services are offered through Gryphin Advantage Inc., which is not a member-Canadian Investor Protection Fund. This commentary may provide links to other Internet sites for the convenience of users. Tall Oak Capital Advisors is not responsible for the availability or content of these external sites, nor does Tall Oak Capital Advisors endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same Privacy Policy which Tall Oak Capital Advisors adheres to.
